Growth: We expect somewhat better, but still modest growth of approximately 3.0% over the next year in the U.S. led by consumption, the housing sector, exports and lower U.S. government restraint. Easy global monetary policies should continue to support growth.

Corporations: They are enjoying strong margins and balance sheets, and may benefit from a stabilized and improving economic climate in Europe, China and Japan.

Corporates Favored over Developed Market Sovereigns; High Yield and Bank Loans Still Offer Relative Value

We continue to maintain our long-term view of relative value, which favors corporate debt and more broadly, spread product. While spreads narrowed to the lowest levels of the year, Investment Grade and High Yield Corporates and Bank Loans are attractive, in light of continued strong fundamentals and low default risk. Steady global economic growth and easy global monetary policy may continue to support credit assets including Corporate Bonds. U.S. companies may continue to enjoy strong margins and balance sheets.

Selective Investment in Emerging Markets

While we believe in their long term attractiveness, with their higher growth rates, low government debt levels, young labor forces and rising middle class, we have become more selective, in light of the less compelling yield advantage over U.S. assets, stronger U.S. growth, and weaker commodities prices.

Maintain Exposure to Convertibles and Municipals

We continue to maintain our exposure to Convertibles, given our preference for equities over Fixed Income.

We continue to hold Municipals as a more attractive proxy for long Treasuries, particularly in light of their current higher relative yields.

Barbelled Yield Curve Positioning

Real yields of shorter term Treasuries, however, are unattractive – they remain significantly negative, below 1%.

We believe these yields are most vulnerable to a sell-off, should economic growth and inflation exceed expectations, and the market prices in a quicker increase in interest rates by the Federal Reserve.

The strategy is designed to separate pure return from market return. We believe that our broad investment universe of lowly-correlated alpha strategies enables us to deliver consistent absolute returns in excess of the market.

Team

The Lead Portfolio Managers on the strategy, Tanguy Le Saout and Cosimo Marasciulo, have worked together for over 10 years.

The team is organized in a unique matrix structure, with Specialist Portfolio Managers focusing on single alpha strategies.

Co-managed by our Fixed Income and Credit teams based in Dublin who average over 10 years' investment experience.

Profile

Absolute return-driven multi-sector investment grade bond portfolio

Possibility to have negative interest rate and credit spread duration

'Core portfolio' designed to replicate 3-Month T-Bill returns and volatility

Strict risk management framework allows monitoring of profit/drawdown of each position

*Absolute Return Bond invests in derivatives, such as options, futures, inverse floating rate obligations and swaps, among others, which can be illiquid, may disproportionally increase losses, and have a potentially large impact on the performance of the strategy.

Multi-Sector Fixed Income 2013 Performance Recap

The strategy's 1-year performance as of 12/31/13 was 2.64% vs. -1.33% of its index, the Barclays U.S. Universal.

We believed that the global economy would continue to recover, central banks would continue to support risky assets through easy monetary policy, and corporations would enjoy strong profits and balance sheets.

Valuations for credit assets were more attractive than those for highly rate-sensitive assets, such as U.S. Treasuries, with their record-low yields and negative real yields across much of the yield curve.

These views, as expressed in the overweights to credit sectors and short duration positioning, were the most important contributors to outperformance for the year:

Sector allocation, relative quality, and duration positioning were the major contributors to performance.

Overall, we have maintained similar positioning for the portfolio over the past twelve months. The most significant change we made over the year was to increase our U.S. dollar exposure, and reduce our foreign currency exposure, given our more favorable U.S. economic outlook. As part of that decision:

We diversified and reduced our emerging market currency exposures from peak March levels, in recognition of the more challenging environments facing certain emerging market economies, and the greater volatility resulting from rising U.S. interest rates.

In addition, we have begun to pare back our high yield exposure, as spreads have compressed and values have become less compelling.

We have begun to add back Agency MBS exposure and reduce Non-Agency investment, as relative value has begun to favor Agency MBS.

Duration has lengthened by one half year, relative duration remains one year short relative to the benchmark.

People

Adding to the Institutional Effort

In January, Brian Burke joined Pioneer's institutional team as Vice President, Institutional Business Development. Prior to joining Pioneer, he served as Director of Institutional Sales and Consultant Relations at Monarch Partners. Brian brings over eleven years of institutional distribution experience having worked in institutional sales, relationship management, and consultant relations. His experience within the three major areas of institutional distribution will provide a great addition to the team.

Independent Addition to Board of Directors

Following Pioneer Investments (Pioneer Global Asset Management "PGAM") ordinary shareholders meeting held on January 22, 2014, the company announces the completion of its new board of directors with the appointment of its fifth independent member, Robert Glauber, former Chairman and Chief Executive Officer of NASD now FINRA (2000-2006) and currently Chairman of the Board of XL Group Plc and Northeast Bancorp.

For Institutional Use Only. Not for use with the public.

The views expressed are those of Pioneer Investments and are current through the date on the first page.

These views are subject to change at any time based on market or other conditions, and Pioneer Investments disclaims any responsibility to update such views. These views may not be relied upon as investment advice and, because investment decisions for Pioneer strategies are based on many factors, may not be relied upon as an indication of trading intent on behalf of any Pioneer strategy or portfolio.
Pioneer Investments is the trade name of the Pioneer Global Asset Management S.p.A. group of companies.

Pioneer Investments ("the Firm") has prepared and presented this report in compliance with the Global Investment Performance Standards ("GIPS®"). GIPS report is available upon request.

Composite dispersion measures represent the consistency of a firm's composite performance results with respect to the individual portfolio returns within a composite. Pioneer utilizes an asset-weighted standard deviation calculation to measure dispersion. Only portfolios that have been included in the composite for a full calendar year are included in the dispersion calculation. This calculation is not considered meaningful if there are not at least two or more portfolios that have been managed within the composite style for a full year.

This composite was created on 1 July 1999, but did not become a GIPS® composite until 1 July 2001. Pioneer Investments has been managing assets in this style since 30 June 1999.

As of 1 September 2013, the U.S. Opportunistic Core Plus Fixed Income Composite has been renamed the Multi-Sector Fixed Income Composite.

Portfolios are included in the composite in the first full calendar month under management and when the portfolio assets meet the minimum threshold requirements for the composite strategy, as described above, at the beginning of the month. Portfolios are excluded from the composite at the completion of the last full calendar month under management or when assets fall below the minimum threshold.

All returns are calculated using the daily valuation methodology. The U.S. mutual funds returns are calculated net of fees and the most recent pro-rated annual expense ratio is added back to create a gross of fee return. Institutional accounts are gross of fee returns with pro-rated management fee subtracted to create net of fee returns. Offshore Accounts are calculated net of fees and the actual monthly expense ratio is added back to create gross of fee return. The performance of the Composite is expressed in U.S. dollars.

The calculated net of fee returns provided in this fact sheet are supplemental and reflect the net institutional fee based on the standard annual investment management fee schedule for institutional separate accounts. The calculated net of fee returns reflected in the GIPS report is based on an asset-weighted calculation.

A complete list of firm composites and descriptions, along with additional information regarding policies for calculating and reporting returns are available upon request.

Additional information regarding the Firm's policies for calculating and reporting returns is available upon request.

Pioneer Multi-Sector Fixed Income ("the Strategy") seeks total return through investing in a broad range of allowable segments including below investment grade U.S. and non-U.S. issuers, U.S. investment grade, and non-U.S. investment grade. The Strategy's allocation among these segments is driven by macroeconomic forecasts, interest rate trends, and political trends. In assessing the appropriate maturity, rating, sector and country weightings, the Strategy considers a variety of factors including fundamental economic indicators such as rates of economic growth and inflation, Federal Reserve monetary policy, the relative value of the U.S. dollar and industry outlooks.

The current benchmark is the Barclays US Universal Index. Please note that on 1 February 2005, the primary comparative benchmark for this Strategy was revised from the Lehman Aggregate Bond Index to the Lehman US Universal Index (now the Barclays Capital US Universal Index) in an effort to make the benchmark of the composite more consistent with the benchmark designated in the guidelines of the constituent portfolios.

Pioneer Investments may use leverage, derivatives and invest in certain markets outside of those represented in the benchmark but these practices are not a significant part of the investment strategy.

The minimum threshold for inclusion in this composite is 1,000,000 USD. Data subsequent to 31 December 2012 has not yet been verified by an independent, third-party verifier.

Performance shown is past performance, which is no guarantee of future results.